Question

the beginning inventory

beginning inventory and the purchases of item ABC during the year w ary 1 inventory 10units at $100-$1000 h 25 Purchase20 units at $125 2,500 30 Purchase15 units at $150- 2,250 er 8 Purchase 20 units at $200 4,000 65 9,750 are 25 units of items ABC in the physical inventory at December ). Determine the inventory cost. First Out method ed average method

Answer 1

Answers

	Ending Inventory
FIFO	$                   4,750
Weighted Average	$                   3,750

• Working

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	10	$              100.00	$                        1,000.00	10	$             100.00	$                 1,000.00	0	$              100.00	$                         -
Purchases:
	20	$              125.00	$                        2,500.00	20	$             125.00	$                 2,500.00	0	$              125.00	$                         -
	15	$              150.00	$                        2,250.00	10	$             150.00	$                 1,500.00	5	$              150.00	$                750.00
	20	$              200.00	$                        4,000.00	0	$             200.00	$                              -	20	$              200.00	$            4,000.00
TOTAL	65		$                        9,750.00	40		$                 5,000.00	25		$            4,750.00 = ANSWER

Weighted Average (Periodic)	Units	Cost per unit	Total
Beginning Inventory	10	$          100.00	$       1,000.00
Purchases:
	20	$          125.00	$       2,500.00
	15	$          150.00	$       2,250.00
	20	$          200.00	$       4,000.00
Total Purchases	55		$       8,750.00
Goods Available for Sales	65		$       9,750.00
Weighted Average cost per unit		$      150.000
Cost of Goods Sold	40	$       150.000	$       6,000.00
Ending Inventory	25	$       150.000	$       3,750.00 = Answer